There is a disconnect between purpose and ownership, as evidenced by the “How India Buys Insurance” report, which found that while 83% of respondents acknowledged the necessity of a health insurance coverage, only 19% actually possess one. Although the desire for health insurance is growing, 30% of the respondents do not already have a policy or do not plan to purchase one in the future.
According to the report, the two biggest obstacles to purchasing a health insurance coverage were a lack of money and difficulty comprehending the goods. Approximately 20% of those surveyed claimed to be ignorant of health insurance, and 18% thought purchasing it was a difficult procedure.
Approximately 48% of respondents are still unaware of the benefits of term insurance, and only 9.6% of respondents actually own it. Nonetheless, the survey found that consumers’ interest in the product is increasing. One of the main causes of the low adoption of term insurance is a lack of knowledge about personal finance.
Term insurance also raises the issue of inadequate funding. High premiums were a disincentive for 27% of respondents, despite 35% citing it as a cause. However, 48% of respondents stated that the complexity of the product and the process is preventing them from purchasing a term insurance policy.
